View from COP27 with Dr. Jeannette Vinke
Following the 2022 United Nations Climate Change Conference or Conference of the Parties (better known as COP27), we hear from Dr. Jeannette Vinke, Chief Operating Officer, American University of Sharjah (and A4S Academy Graduate) on her experience of going to the negotiation in Sharm El Sheikh, Egypt.
Q. What has been your key takeaway from COP27?
A. COP gives all 198 parties an equal voice. Initially I was quite astounded by the inefficiency that causes, but spending more time in negotiation rooms with those parties made me appreciate the voice that this gives to countries which are otherwise not heard, like for example small island states and least developed countries. The one success of this African COP is the acknowledgement that those nations that are incurring loss and damage due to climate crises related events deserve support. Setting up the newly announced fund will hopefully go some way to restore trust from the Global South.
It’s sad that no stronger commitment regarding ‘keeping 1.5 alive’ was achieved at this COP. It’s clear that unheard of financial investments will be necessary. The current financial mechanisms agreed in Kyoto and Paris won’t suffice. What is clear, as mentioned by the US climate envoy John Kerry, is that no country will be able to write a check for the trillions of dollars that will need to be invested in mitigation, adaptation and loss and damage. Other sources of finance, specifically private finance through banks and others, will be necessary. Innovative ways of blended finance can for example be where government grants are blended with private finance, can help. There will however be some necessary expenses for which it would be difficult to build an individual business case, especially regarding loss and damage. Larger multilateral initiatives will be required, for example through cooperations by central banks, to avoid untold damage.
Q. What actions should those in the finance community take to close the ambition gap?
A. First and foremost it’s important to understand that the COP process by itself will not solve the climate crises. It’s an important and inclusive process at country level, but the world’s large finance institutions (private, public, central banks) are not at the table. What happens outside of COP process – as we saw with the more ambitious results of the G20 resonating in COP – does influence what goes on in COP. The finance industry needs to take responsibility to solve the finance gap, both in quantity and in quality. With quality I mean that the finance needs to be accessible to those who need it, in a reasonable timeframe. This will take cooperation and innovation on a scale we have never had to deal with. Cooperation, innovation, and long-term planning of the large finance stakeholders is happening but needs to be ramped up and can be done parallel to the COP process.
Q. Looking ahead to COP28, what needs to happen between now and then to ensure it is a success?
A. With the finance industry taking the lead on ensuring solid mechanisms are in place to ensure (private) finance can start flowing to where it needs to go, more constructive agreements can be reached at COP28. The business case for these financial flows will only add up if the true costs and benefits of mitigation, adaptation and loss and damage are reported and awarded. The finance community can take the lead, but will need to interact with all other stakeholders to ensure this happens.
